Employment and ESG, why it matters

Employment and ESG, why it matters

Over the last decades, we have seen a significant shift in the way that businesses approach social responsibility and an unexpected new item has recently made its way up the priority list environmental, social, and governance criteria ESG.

ESG is a tool for businesses to measure sustainability using environmental, social, and governance factors as well. Getting it wrong can be a major impact in terms of both profitability and reputation. 


Businesses that are failing to meet the expected ESG performance standards should be expected to see a knock-on impact on their reputations. There have been numerous reported examples of ESG employee issues such as modern slavery, sexual harassment, and race discrimination having a substantial impact on the share price and market values of large.  As a workforce strategy, ESG has become a competitive advantage in attracting and retaining talent as well.


Most companies with a strong ESG and labor relationship proposition have better productivity.  Addressing the widening gap between executive and workforce pay is directly linked to productivity. Fairer incentives good structure can help drive an inclusive culture and employee engagement, which in turn and also can boost increase productivity.


Many examples of how poor ESG performances can sink share prices and lead to significant costs. All types of investors and stakeholders are now alive to ESG performance and want to see not just short-term plans but also how the core business model incorporates and deals with these issues in the long terms fact.

International standards:

While maximum countries operate in markets with labor laws that provide relatively low levels of their protection to the employees, businesses will no longer be able to rely on their geographical location. There are international frameworks that set out expected employment standards across the world by which non-governmental organizations, investors, other stakeholders, and the media are now judging businesses as well.

Legal compliance:

The ability to investigate ESG breaches and issue fines has significantly increased well. For example, gender pay gap reporting is now compulsory for companies in the UK with more than 250 employees and similar legislation applies in Australia and California.